Shift-Share Analysis

Shift-share analysis is a method of analysing regional growth, a technique that compares regional growth with growth at the state (or national) level. EconSearch uses this approach to help provide insights into regional structural change. The method seeks to attribute changes in the regional economy to various components, namely:

share (or state growth) component

proportionality shift (or industry mix) component

differential shift (or regional) component

Share (or state growth) component

Indicates the extent to which growth in the state economy has influenced growth at the regional level. This component shows the amount by which growth in the region would have been if it grew at precisely the same rate as the state as a whole.

Proportionality shift (or industry-mix) component

Arises from the fact that some sectors, at a state level, grow more quickly than others. Thus a region that specialises in ‘slow-growth’ sectors is likely to show a net downward proportionality shift. Conversely, a region favoured by a high proportion of ‘rapid-growth’ sectors will, most likely, show a positive proportionality shift.

Differential shift (or regional) component

Regions that have positive differential effects will have locational advantages for particular activities that have improved relative to other regions. Sectors at the regional level do not necessarily grow (or decline) at the same rate as the same sector at the state level due to circumstances which provide regional comparative advantage (or disadvantage).

Latest News

IELab Conference 2017

26 November 2017: EconSearch economists Nick Angelakis and Anders Magnusson recently participated in the IELab Conference 2017 in Queensland. The conference showcased the diverse applications of IELab (Industrial Ecology Virtual Laboratory) and provided opportunities for new collaborations and methodology developments. EconSearch has supported the development of IE Lab since its inception. Continued participation in the community allows EconSearch to contribute to the improvement of regional economic analysis in Australia and allows timely access to the bespoke regional economic models.

Circular Economy Conference and Academic Symposium

17 November 2017: EconSearch economist Heather Bailey recently gave a presentation to the Powering the Change to a Circular Economy conference and academic symposium. On November 15-17 in Adelaide, South Australia, business, government and academia came together to collaborate and discuss how the circular economy can be, and is being, implemented. Heather presented a paper about the study EconSearch undertook, in collaboration with LifeCycles, Colby Industries and the University of Queensland, for the South Australian Government on the potential benefits of a circular economy in South Australia.

Northern Adelaide Irrigation Scheme

17 August 2017: Funding has been secured through the National Water Infrastructure Development Fund (NWIDF) for the Northern Adelaide Irrigation Scheme (NAIS), which adds to $110 million committed by the State Government earlier this year. SA Water and PIRSA have partnered to develop the project. To deliver the additional recycled water (20GL), upgrades are required to the Bolivar Wastewater Treatment Plant, as well as a new pipe network north of the Gawler River. EconSearch assisted this successful bid by providing a cost benefit analysis and an estimation of the economic impact of the proposed development. Click here for the media release.